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[Investor Story] 🔔 Retired at 40! How a 20-year veteran trader used other people's money to make over ten million through 'effortless profit'?

With 20 years of investment experience, retired in my early 40s!In this Investor Story, we invited@31771457 水牛He usually focuses on options and value investing.Holding Bitcoin for nearly 10 years, but rarely 'using his own money' to invest. Instead, he excels at leveraging leverage and option strategies to achieve 'creating something from nothing'.。

In this Investor Story, we invited a low-profile, hands-on fellow investor to share how he invests using other people's money and profits from trading steadily amidst volatility.

1. A 20-year veteran trader! Former investment banking elite who retired at 40

Q: Hello, Water Buffalo Brother, could you briefly introduce your investment experience?

A: Hello fellow investors, you can call me Shuibull. I'm in my 40s now, and the core of my main business is investing. I first got into trading when I was around 20, starting with Hong Kong stocks. For the past 10+ years, I've mostly been trading US stocks, accumulating nearly 20 years of experience in both Hong Kong and US stock markets. Last July, I started trading on Niuniu, and within 5 months, my small position account surged by 65%.

Section 2: Stock selection and risk control—position size determines mindset! How to find ten-bagger stocks?

Q: How to pick stocks in daily practice? Focus on fundamentals, technicals, or news?

（1）Stock selection factors:Only buy "core" stocks, avoid "concept" stocks，Focus on AI and technology-related industries, avoid overly conceptualized sectors(e.g., data centers, nuclear power, etc.), primarily focusing on $Advanced Micro Devices (AMD.US)$$Intel (INTC.US)$$NVIDIA (NVDA.US)$ Such as core technology enterprises.

（2）Core analysis dimensions:Generally value investing, focusing on fundamentals and emphasizing the valuation of individual stocks, studying historical data and industry comparisons, with less reliance on news. In fact, by analyzing the data and monitoring key industry indicators, you can roughly determine whether the news is true or false and whether AI has a bubble. Other factors to consider include:

① capital expenditure (CapEx): Observe whether capital investment by large enterprises like the Mag 7 is increasing or slowing down

② Industry information:More focus is placed on internal industry updates (such as actual technological progress in the chip industry) rather than solely relying on news from Bloomberg, Reuters, etc.

③ Information acquisition: You can watch English-language sources such as YouTube content and CNBC for real-time, untranslated firsthand information

Q: How do you allocate your investment portfolio? Do you prefer value investing or short-term trend trading?

A: My investment portfolio follows the 622 rule: 60% in Bitcoin, 20% in bonds, and 20% in US stocks.LikeI’ve held Bitcoin for over a decade, with an average cost of $7,500.. In fact, Bitcoin is still 'not expensive' at this point because it hasn't reached the stage where everyone owns some.

Drilling down into the U.S. stock portfolio, if we calculate based on 100% of wealth,the portion dedicated to long-term value investing only accounts for 20-30%. These are my 'core holdings.'The main focus is actually on options trading since I spend most of my time trading options, primarily long calls, occasionally long puts or selling puts.

Q: How to find 'ten-bagger stocks'?

(1) The market cap should be small with room for growth.: such as $Circle (CRCL.US)$20 billion US dollars,$Coinbase (COIN.US)$A market cap between $20 billion and $70 billion to $80 billion still has potential; after all, NVIDIA at a $4 trillion market cap will hardly see another tenfold increase.

(2) It must have the potential to change the world.： Using 'endgame thinking,' reverse-engineering from the rearview mirror of future history back to the present, if the market cap is too large, there’s not much room for imagination

Three, making money without capital! From SP Circle IPO to achieving tens of millions in gains, all thanks to 'using other people's resources to generate your own profits'

Q: Can you share the transaction that left the deepest impression on you?

A: The most memorable one was the Circle options trade,entirely relying on 'using someone else’s money to make your own profit'。

– IPO stage (60 USD)： Start doing SP (selling put options) to collect premiums, when Circle was priced over $60,You could collect a $6 premium (10% return) in one month. At that time, few people were trading Circle's SP, so I bought a lot.

– Growth phase ($100): Circle SP options became worthless; I collected more than $2 million in premiums.I then used this money to buy Circle's Long Call options

– Breakout phase ($100 → $200): This wave of Long Callsearned nearly eight-figure profits!

– short-term trading: Trading SP and common stocks repeatedly in the $60-$200 range, although there were some...Partial Circle stock purchases resulted in losses of 300,000-400,000. However, throughout the process, it was as if no principal was used, relying entirely on rolling premium trades.。

Q: Why did you choose Circle at that time? Besides volatility, were there other considerations?

A: On one hand, I've held Bitcoin for over 10 years with an average cost of $7,500. I am very familiar with stablecoins and the virtual asset sector—platforms like Circle and Coinbase are core assets in this space, and I can understand their fundamentals.

On the other hand, at that time, its SP options yield was very high. With the stock price at over $60, you could collect $6 in option premiums per month, equivalent to a 10% return. Such a valuation is rare. However, now that Circle has returned to $80-$90, volatility has decreased, so there isn’t much operational value left.I never touch stocks with contracting volatility or low movement when it comes to options trading.

Q: How does the concept of generating profit without capital work? How do you assess whether volatility is high or low?

A: Generating profit without capital hinges on investing using other people's money!For example, selling put options to collect premiums, usually without needing to use my own capital (since brokers provide purchasing power from large positions), and then using that money to buy long call options. For me, this means investing with 'other people’s money.'As long as I manage my position well (stocks only account for 20% of total assets), even if the market crashes, I won't panic because I'm not actually risking my principal on high-risk returns.For example, on the investment platform, I put in 400-500k and earned 300-400k in five months, also relying on this strategy of leveraging and rolling option premiums.

IV. Newcomers avoid detours! Practical tips for options trading: how to profit from volatility.

1、The core principle of Short Put options: don’t focus on price levels, focus on implied volatility (IV).

（1）Volatility comes first; volatility is where the opportunity lies.：The key focus in SP options trading is volatility, rather than solely looking at stock prices or strike prices.What is high volatility? For instance, it doesn’t matter if the market rises 3,000 points today or drops 5,000 points tomorrow. What’s feared most is a daily rise of 100 points followed by a drop of 200 points.Opportunities arise with volatility; without volatility, there are no opportunities!

Implied Volatility (IV) reflects whether an option is expensive or cheap. For example, if a stock's current price is $80 and IV is high, I might directly write an $80 Short Put, collecting a $10 premium. Even if I get assigned, my cost basis will be $70 ($80 - $10). Typically, I won’t choose options expiring more than a month out, as too much time value takes over, reducing volatility.

（2）Strategy Combination: Start with fundamental analysis, then move into options; never blindly chase volatility.。Options will mainly be short-term, with expiration dates often within a month, as longer durations are dominated by time value and tend to have less fluctuation. Typically, I focus on the price levels with the highest volatility.(usually selecting IV percentiles between 85%-90%, after adjusting for stock price), and the maximum amount is controlled to the equivalent of 2-3 million in stocks. Of course, position sizing should vary by individual.

（3) Prioritize assets with weekly returns exceeding 1%：High volatility is more attractive to sellers since they can collect higher option premiums.Typically, I also choose assets that yield more than a 1% return per week after adjusting for volatility, which essentially means you're earning an extra 1% without additional capital.

2. Options trading instruments! Everyone has their preference! Stocks vs Options, how to choose?

（1）The majority of option-traded assets are individual stocks., because they are more volatile, whereas index-related products $Invesco QQQ Trust (QQQ.US)$ or $SPDR S&P 500 ETF (SPY.US)$ are too stable. Additionally, options trading will focus on long positions I hold or stocks with significant volatility at the moment.For example, when I hold AI-related stocks and crypto stocks that are highly volatile, executing short puts or long calls works well. However, it’s not completely tied to long positions,the core consideration is still volatility—where there's volatility, there's opportunity.

(2) Stocks vs Options Selection

①High Volatility + Positive View on Fundamentals = Options (Long Call, Selling Puts)

②Volatility Contraction + Positive View on Fundamentals = Stocks

③Unfamiliar = No investment; I only buy companies that will continue to grow in the future.

3. How to manage risk control for your positions? How to determine when to increase or decrease your holdings?

①Position size should be kept within an acceptable level of risk.: I allocate 20% of my position to value stocks as a base, and 80% in options using 'other people's money' to operate., so even if there is a loss, it doesn't affect the principal.

②There’s also a rhythm to increasing or decreasing holdings.：I don’t go all-in at once but add positions in batches.(Adding 20% more position for every 1%-2% drop)., while adding some SP positions to lower the average cost;Take profit promptly when there is a gain.For instance, on December 17th, I bought Circle at $76 and sold the $70 SP the next day with a 7% gap-up, making a 90% profit which I immediately closed out. For NVIDIA’s monthly SP, I may consider taking profits 1-2 weeks before expiration if there’s a 60-70% return. Occasionally I let options expire, because sometimes upon reopening, you might not get as good a price as before.

③Adjust positions during market fluctuations:Add positions when others are panicking, reduce positions when others are greedySometimes I wait for a stock market crash or when everyone gives up on the market before entering. Like in April this year, I accumulated a lot of stocks, with Meta being the most profitable.

5. Three major suggestions for beginners

（1）Strictly control your position size：Don’t exceed your risk tolerance—If an option price plummets and you're forced to take delivery, it's easy for beginners to stumble here;Investing is a game of mentalityWhy do you panic when you hear about a stock market crash? It’s because your position size is too heavy. Invest using disposable income; even if it drops to zero, it won't affect your life. Only then can you hold on. Strictly control your position. Don’t go all-in at once or become overly passive. Iprefer to invest using other people’s money; don’t lose your own capital。

（2）First, learn how to lose money：You can only know whether options are overpriced or underpriced by losing money.Every investor has a different mindset; some want to take delivery of the underlying asset, while others aim to profit from volatility.Novice investors don’t have to struggle too much and can simply buy index funds.Because in the past two years, there have been many characteristic indices, such as the Global X Issued Hang Seng Index Covered Calls, which perform quite well. The strategies are similar to some approaches in the U.S., although there may be some differences in investment returns. However, these products are still worth considering for beginners.Because there are more products that emphasize safety, although it sounds risky as a covered call ETF, compared to traditional products, they are relatively safer.

If you like Hong Kong stocks, you can research $Global X HSCEI Covered Call Active ETF (03416.HK)$ Because the Hang Seng Index has lower volatility, the dividend yield should be around 14-15%. Even after excluding principal payouts, the yield is still about 7-8%, which is quite high. Additionally, $Global X S&P 500 Covered Call Active ETF (03415.HK)$$Global X Nasdaq 100 Covered Call Active ETF (03451.HK)$ It's suitable for investors who want to buy U.S. stocks but are afraid of volatility.

（3）Cultivate independent thinking and expand your knowledge beyond finance.Do not blindly follow KOLs, news, or market sentiment; rationally assess the value of investment targets.You can read more non-financial knowledge, such as non-financial books or interviews. Sometimes, instead of reading big banks' research reports (analysts also hear from AI experts),go directly to the core industry information and read books by industry experts.Or watch speeches by NVIDIA CEO Jensen Huang and Elon Musk.Don't let too many second-hand opinions from financial professionals sway your judgment; go directly to the primary knowledge in the industry, which may be more helpful for your investments.

Q: When we mentioned the '7 major players,' how does the teacher see it?

A: I've only been on this platform for five months with returns of 50-60%, mainly buying $Tesla (TSLA.US)$$NVIDIA (NVDA.US)$$Circle (CRCL.US)$$Coinbase (COIN.US)$$Palantir (PLTR.US)$$Intel (INTC.US)$ . PLTR is a company I personally participated in during its pre-IPO due diligence when I was in investment banking. At that time, it was the only company helping the U.S. government with confidential work, having a very deep moat. So I started buying it when it was just a few dollars. Intel has the potential to become the U.S. version of Taiwan Semiconductor, but its earnings this quarter or next might disappoint, so you may want to hold off on purchasing for now.

Q: What’s your view on the future performance of Hong Kong and U.S. stocks?

A: The U.S. stock market hasn’t really pulled back; it’s less than 1% away from its highs.However, the US stock market is still too crowded with capital now, and valuations are on the higher side. Liquidity isn't sufficient to support further upward movement. Therefore, it's estimated that there might be a pullback between January and March 2026. A pullback would actually be healthy, and at that time, one could consider entering the market cautiously.This year, it's still highly likely the market will first fall and then rise.

Meanwhile, Hong Kong stocks are expected to diverge somewhat from US stocks, given that 300 companies are queued for IPOs this year, while investment banks will also maintain market sentiment.Thus, there is a bias towards moderate optimism. For 2026, an estimated 10% increase to around 28,000 points seems reasonable.There won’t be a sharp drop or a sudden surge, making it suitable for volatility trading.

Sixth, switching to BullBull Trading! These four features impressed me the most.

Q: You used IB before and then switched to BullBull; what features attracted you?

（1）Simple interaction, easy-to-use operations.: Beginners can quickly get the hang of it.

（2）Great charting experience.：BullBull’s options chain interface is very straightforward., quick price quotes,Call Put T-type quote trading volume is clear at a glance on one page

（3）Participating in IPOs for new shares：Leveraged financing for subscribing to new shares with high leverage multiples, and the interest charges are also cheaper compared to others;

（4）Trading win rate feature: In order to usethe trading win rate feature of NiuNiu, I sometimes buy and sell the same stocks in NiuNiu as in other accounts.It's a pretty useful feature, sometimes you really don't need monthly statements, the win rate is what matters most.

Alright, that’s about all for today's sharing. Once again, thank you to Brother Water Buffalo for taking the valuable time to join this interview. Looking forward to more interesting trading stories and investment methods from you in the Investor Story community~

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Disclaimer: The content of this article was provided by @31771457 水牛Accept @InvestorStoryThe interview was compiled, and the images in the text were provided by@31771457 水牛Provided and authorized for use. The article and case studies are for reference only and do not constitute any investment advice. Information related to the article does not imply any industry or benchmark recommendations; information and introductions regarding individual stocks represent the user's personal opinions and do not constitute any stock recommendations. Past performance of individual stocks is not indicative of future results. The stock market involves risks, and investments should be made with caution.

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